to 3 to 5 metres per year in parts of Gujarat. The medium to long-term risks to agriculture in such a scenario range from an eventual decline in water resources, to the intrusion of salt-water in coastal areas. As groundwater tables drop, the pumping of groundwater from deeper and deeper wells requires an ever-increasing amount of electricity. Because electricity for agriculture is subsidised, there is little incentive for farmers to adopt water-saving techniques, creating a vicious circle of water and energy consumption. Recently, the government of Gujarat has engaged in a pilot program to experiment with ways to shift incentives for farmers toward more water- and energy-efficient technologies and practices. In Karnataka, three projects are implemented in BESCOM and HESCOM areas (under AgDSM program = Agricultural Demand Side Management), with an objective to promote use of energy efficient pump sets in the irrigation. Targeting intended recipients According to the United Nations Development Program, the richest 20% of the Indian population received $16 billion in subsidies in 2014. These subsidies were primarily the result of open subsidies on six goods and services - cooking gas, railways, power, aviation fuel, gold and kerosene. Another subsidy that benefits the richer sections of the population is tax exemption on public provident funds. However, these subsidies also benefit middle class and poor sections of the population. Methodology for estimation of subsidies in India Alternative approaches and conventions have evolved regarding measurement of the magnitude of subsidies. Two major conventions relate to measurement through (i) budgets, and (ii) National Accounts. The latter estimates comprise explicit subsidies, and certain direct payments to producers in the private or public sectors (including compensation for operating losses for public undertakings) that are treated as subsidies. This, however, does not encompass all the implicit subsidies. The estimates of budgetary subsidies are computed as the excess of the costs of providing a service over the recoveries from that service. The costs have been taken as the sum of: revenue expenditure on the concerned service annual depreciation on cumulative capital expenditure for the creation of physical assets in the service; Interest-cost (computed at the average rate of interest actually paid by the respective governments) of cumulative capital expenditure, equity investments in public enterprises, and loans given for the service concerned including those to the public enterprises. The recoveries are the current receipts from a service, which are usually in the form of user